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LB 201

Provide for a fee under Nebraska Money Transmitters Act

109th Legislature (2025-2026) Introduced by Kathleen Kauth

Nebraska LB 201 adds a cross-border money transfer fee: licensees collect 10% of the transfer value (up to $10,000) and remit quarterly.

Title printed. Carryover bill
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Bill Summary · LB 201

Summary of Nebraska LB 201 (2025)

Overview

  • Bill Number: LB 201
  • Title: Provide for a fee under Nebraska Money Transmitters Act
  • Introduced: January 14, 2025
  • Status: Notice of hearing scheduled for February 18, 2025
  • Primary Sponsor: Senator Kathleen Kauth
  • Committee: Banking, Commerce and Insurance (Chair: Senator Mike Jacobson)
  • Operative date: January 1, 2026
  • What it does (high-level): Adds a new fee requirement to the Nebraska Money Transmitters Act for money transmissions sent to recipients outside the United States, and sets the mechanism for collection and remittance of those fees to the state.

Purpose and Intent

LB 201 aims to amend the Nebraska Money Transmitters Act to authorize and require a specific transaction fee on international money transmissions. The bill intends to harmonize provisions within the Act and create a clear, recurring revenue stream for the state by imposing a standardized fee on cross-border transfers.

Key Provisions

  1. New Fee on International Transactions

    • A licensee or authorized delegate must collect a fee for each money transmission transaction sent to a person outside the United States.
    • The fee amount is:
      • 10% of the value of the money transmission, or
      • $10,000, whichever is less.
    • This provision applies specifically to transactions sent to recipients outside the United States.

  2. Fee Remittance and Reporting

    • The collected fee must be remitted quarterly to the Nebraska Department of Banking and Finance.
    • Remittance must be accompanied by appropriate forms and submitted no later than the 15th day of the month following the end of each calendar quarter.
    • The Nebraska State Patrol provides assistance in the remittance process.

  3. Operative Date and Repeal/Revision

    • The act becomes operative on January 1, 2026.
    • The bill repeals the original section (8-2701) and creates revised statute language under the Nebraska Money Transmitters Act (8-2701 et seq., and related sections).

  4. Harmonization

    • The bill notes an intent to harmonize provisions within the Act, aligning terminology and requirements with the broader statutory framework.

Affected Parties and Impacts

  • Licensees and Authorized Delegates: Entities licensed to engage in money transmission (and their authorized delegates) will be responsible for collecting the new cross-border fee and ensuring quarterly remittance to the state.
  • Recipients Outside the U.S.: The fee will be assessed on the value of cross-border money transfers they receive.
  • State Agencies: Nebraska Department of Banking and Finance (administration and oversight of the fee collection) and the Nebraska State Patrol (assistance in the remittance process).
  • Potential Economic Impact: The new fee creates a cost for international money transfers, which could influence pricing, compliance overhead, and consumer costs for cross-border remittances.

Procedural and Timeline Aspects

  • Hearing Date: February 18, 2025 (Banking, Commerce and Insurance Committee)
  • Effective Date: January 1, 2026
  • Implementation Steps: If enacted, licensees must begin collecting the new fee on qualifying cross-border transfers, and remit quarterly starting after the operative date.
  • Legal Status: As of the hearing notice, the bill is in the committee review stage with a defined fiscal and operational framework pending debate and potential amendments.

Notes

  • The bill explicitly targets money transmission transactions sent outside the United States and provides a cap (whichever is less: 10% or $10,000) to guard against excessive charges on large transfers.

Compiled from official sources — confirm details with the bill’s official record.

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